Senate Bill (SB) requires that qualifying housing developments located within a transit‑oriented development (TOD) zone be permitted as an allowed use on any parcel zoned for residential, mixed‑use, or commercial development, provided the project complies with applicable statutory requirements. Among these requirements, projects must include at least five dwelling units and meet the statute’s height, density, and residential floor area ratio (FAR) standards, which vary based on proximity to specified tiers of TOD stops.

SB 79 applies only in urban transit counties, defined as counties with 15 or more passenger rail stations. Currently, these include Alameda, Los Angeles, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara counties.

Under SB 79, the California Department of Housing and Community Development (HCD) must establish standards for how capacity under this chapter may be counted in a city or county’s inventory of land suitable for residential development. HCD encourages local jurisdictions to use mapping provided by their metropolitan planning organizations (MPOs) to identify TOD zones, TOD tiers, and qualifying parcels.  

For additional information on housing elements, sites inventory, and analysis requirements, please see Building Blocks: A Comprehensive Housing Element Guide.

Using SB 79 Towards Meeting the Regional Housing Needs Allocation

Government Code section 65583(a)(3) requires local governments to prepare an inventory of land suitable for residential development, including vacant sites and sites with redevelopment potential, and to analyze the relationship between zoning, public facilities, and services. Government Code section 65912.155 further allows capacity generated under SB 79 to be counted as part of a jurisdiction’s housing element sites inventory.

Sites Inventory

The housing element must include a parcel-specific list of sites using assessor parcel numbers (APNs). In addition to standard inventory requirements, jurisdictions should indicate which sites are included pursuant to SB 79 zoning and development standards by identifying them in one of the optional information columns in the required Excel spreadsheet.

Sites Inventory requirements are available here: Sites Inventory Form and Instructions | California Department of Housing and Community Development.

Sites Analysis

Each SB 79 site must meet all site requirements of Government Code section 65583.2. This includes analysis related to infrastructure access, environmental constraints, non-vacant sites, affirmatively furthering fair housing (AFFH), and capacity. Densities required by SB 79 meet the densities required to demonstrate zoning appropriate to accommodate lower-income housing. However, in addition to these requirements, SB 79 sites must also consider the following:

  • Consistency with AFFH: SB 79 sites often align with best practices for lower‑income RHNA site selection such as proximity to transit, high‑performing schools, jobs, amenities, healthcare facilities, grocery stores, and available infrastructure. However, jurisdictions should avoid concentrating lower‑income housing in limited areas and should promote housing supply and choice throughout the community.
  • Capacity Analysis: SB 79 qualifying parcels are entitled to the density and development standards established in state law. Jurisdictions may choose to allow greater density, FAR, or height. While these standards are guaranteed by law, developers are not required to use SB 79 and may instead pursue development under existing zoning—even if it permits lower-density or commercial uses. Capacity methodology must therefore evaluate the likelihood that developers will utilize SB 79. This analysis may include:
    • Local Trends
      • Past development activity under SB 79, including approved or proposed projects.
      • The rate that SB 79 projects have occurred on eligible sites in comparison to the underlying zone.
    • Market Conditions
      • Evidence of market interest in SB 79 development.
      • Evaluate how the density and development standards permitted under SB 79 compare to those allowed by the existing underlying zoning,
    • Programmatic Actions
      • Actions taken to facilitate or encourage SB 79 transitoriented housing development.
      • Monitoring of development using SB 79 compared to assumptions in the housing element.

Program Actions to Facilitate SB 79 Development

Examples of program actions that may support the development of SB 79 transit‑oriented housing include:

  • Outreach to property owners
  • Ministerial processing of lot consolidation, subdivision, or condominium maps
  • Adoption of an ordinance authorizing staff‑level review of SB 79 applications
  • Transparent, objective application processing requirements, including checklists, dedicated applications, and clear approval procedures
  • Internal coordination across departments to ensure timely processing
  • Local funding support, such as using local housing funds to finance below‑market‑rate units
  • Technical assistance and a designated point of contact for applicants
  • Reduced, deferred, or waived impact fees for SB 79 projects

Monitoring Requirements

  • Jurisdictions must include monitoring programs with follow‑up actions to ensure sites develop as anticipated. Programs should identify how the jurisdiction will adjust incentives, sites, programs, or zoning if development does not meet expected housing potential. 
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